Shining a Light on Hidden Insights
Embracing data is a necessity for today’s savvy businesses. But the biggest obstacle to using advanced data analysis is simply access to the data. Breaking down data silos can be especially difficult when in a survey of Data Scientists by Figure Eight (formerly CrowdFlower), respondents indicated that they spend around 80% of their time on preparing and managing data for analysis. On top of that, 78% view data preparation as the least enjoyable part of their work.
One of the primary value propositions of the Wicket Scorecard is the ability to unlock interesting insights which can only be realized by combining and harmonizing data from multiple sources. In effect, doing the heavy lifting for the data department and freeing them up to more deeply analyze the prepared data. While this happens behind the scenes, it is what makes the Wicket Scorecard such a powerful tool for measuring the overall health of a video business and more importantly, identifying where to take action.
Leveraging Integrated Data
By harmonizing data (Fig. 1) we can present unique insights in our Scorecard, which we’ll explore further in this post. This combined data set also serves as a great foundation for our machine learning efforts, which delivers more interesting correlation features and predictions than the individual data sources. Finally, we can make this data set available to our customers to explore on their own, outside of the Scorecard.
Putting Unique Insights to Work
In the Wicket Scorecard, we strive to illustrate not only what is happening within a video business, but just as importantly, why. This combination lends itself to a more thoughtful view of the factors in play that drive KPIs and provides a more direct path to taking action to improve them. This manifests in many ways within the Scorecard, and to illustrate that we’ve provided a few examples below.
Connecting Marketing Spend to Subscriber Health
The sample graph below (Fig. 2), is a natural place to look in the Wicket Scorecard if a customer notices a recent uptick in churn, and/or customer acquisition cost, especially amongst newer users:
What you see above is data harmonized from a site analytics tool and a subscriber management system. By combining these sources, it is easy to see something that might otherwise be missed. Ads are clearly doing their job in terms of driving new trials, which is often the extent to which marketers have visibility into success. Through that lens, advertising looks very successful, and it would be easy to justify spending more marketing dollars in that category. However, when you look at the last touch data combined with the entire subscriber lifecycle data it’s easy to see that users who are convinced to sign up for a trial by ads do not end up being healthy subscribers on average. They choose not to convert to a subscription at a much higher rate than other users, and those that do convert, tend to cancel at a much higher rate. This will drive down lifetime value of a subscriber base and effectively drive up overall subscriber acquisition costs. Possible actions:
- Redirect spending to more effective marketing channels
- Test new advertising approaches
Optimizing Engagement for Improved Customer Lifetime Value
By combining data sources, we can also look for patterns in consumption and how they correlate to conversions and most importantly customer lifetime value. In the sample graph below (Fig. 3) we’re using data harmonized from viewing analytics, an OVP and a subscriber management system to show correlations between the number of series that users are engaged with and lifetime value:
The big takeaway from this graph is that there is tremendous value in making sure that users are engaged with at least two series at any given time. There is an obvious jump from zero to one series and then meaningful incremental growth in value as users engage with two, three or four series. The call to action here is to target users who are only watching one series with promotions for a few shows that they are likely to appreciate.
Those are just two examples of the many ways that media companies can take advantage of the unified data and well-curated insights & correlations that make up the Wicket Scorecard. If you’d like to learn more, please reach out. Not only would we love to learn more about your business but also show you how the Wicket Scorecard can help optimize and maintain a healthy subscriber base through the use of integrated data. Thus giving you an essential competitive advantage.
Tags: audience lifetime value • churn • content engagement